This tax measure is designed to encourage economic diversification in resource regions as well as stimulate development and expansion of local businesses. Eligible corporations can obtain a tax credit until December 31, 2010.

The following territories are recognized as resource regions: Bas-Saint-Laurent, Côte-Nord, Saguenay–Lac-Saint-Jean, Mauricie, Abitibi-Témiscamingue, Nord-du-Québec, Gaspésie–Îles-de-la-Madeleine, Antoine-Labelle Regional County Municipality (RCM), Vallée-de-la-Gatineau RCM and Pontiac RCM.

ELIGIBILITY CRITERIA

Eligible Operations

• Wood: manufacturing and processing of finished or semi-finished products, including drying and planing operations; manufacturing and processing of products from paper and paperboard;
• Energy: production of energy from non-conventional, ecological sources, e.g., biomass or hydrogen; manufacturing of products destined for energy production or use;
• Metals: manufacturing and processing of finished or semi-finished metal products;
• Food sector: manufacturing and processing of food.
• Installation* or marketing of a product or equipment (must be incidental to manufacturing or processing activities).

_{^{*Installation activities are excluded in the case of corporations that filed an application after March 23, 2006. Corporations that filed an application or obtained an eligibility certificate before March 23, 2006 can benefit from the tax credit regarding these until December 31, 2007.}}

Other sectors:

• Manufacturing of finished or semi-finished products from peat or slate;
• Manufacturing and processing of finished or semi-finished products from precious and semi-precious stones, including setting of such stones and manufacturing of jewelry;
• Reclamation and recycling of wastes and residue from development or processing of natural resources;
• Freshwater aquaculture;
• Printing and publishing, including operations related to typesetting, printing, collating, folding and binding;
• Manufacturing and processing of finished or semi-finished products from non-metallic minerals.

Eligible Employees

To be eligible, employees must work in a facility operated by an eligible corporation located in a resource region, and devote at least 75% of their time to tasks directly related to eligible activities, which exclude, for instance, general administrative tasks.  

Eligible Wages

The eligible wage corresponds to employment income generally calculated pursuant to the Income Tax Act.

Special Requirements

To be entitled to the tax credit, your corporation must be recognized; i.e., it must hold an eligibility certificate issued by Investissement Québec.

To obtain the certificate, your corporation must demonstrate, among other things, that it can, within a reasonable length of time, create at least three full-time equivalent positions in a facility located in an eligible region.

Your corporation must also obtain from Investissement Québec an annual eligibility certificate for its activities along with an annual eligibility certificate for its employees.

ELIGIBILITY PERIOD AND DURATION

The tax credit may be claimed until December 31, 2010*. The recognized corporation's operations in the eligible region must begin no later than March 31, 2008.

^{_{*However, the eligibility period may end before December 31, 2010.  If an eligible corporation elects to claim Revenu Québec's investment tax credit relating to manufacturing and processing equipment, it will irrevocably lose the right to claim the tax credit for the resource regions. For more information, see the detailed fact sheet on the tax credit for the resource regions on our Web site.}}

DETAILS OF TAX ASSISTANCE

Nature of Assistance

Refundable tax credit based on payroll increase attributable to eligible employees of the recognized corporation, calculated as follows:

_{* In general, the base calendar year is that following the first calendar year of eligibility for the tax credit.}

Fees

Fees are charged for analysis of all eligibility certificate applications. For more information, contact an Investissement Québec advisor, or see the rates schedule on our Web site.

PROCEDURE

Step 1

Contact an Investissement Québec advisor, who will answer your questions and tell you where to get a copy of the application form for an eligibility certificate on our Web site.

Step 2

Complete the form and send it to Investissement Québec. If your corporation is eligible, you will receive an initial eligibility certificate.

Step 3

At your financial year-end, submit your applications for an annual eligibility certificate. Remember: your application must be for a full calendar year.

You can also take advantage of our Interim Financing of Tax Credits program.

August 2008